Nifty broke out of the previous day’s narrow consolidation range of 26,113–26,198 and steadily moved higher as the session progressed. The index hit an all-time high of 26,340 today before finally closing at 26,328.55. On the daily chart, it has formed a sizeable bullish candle, indicating strong buying interest. The RSI has given a trendline breakout and is now settled above 60, signaling strengthening bullish momentum.
On the sectoral front, Nifty CPSE ended the day as the top sectoral gainer, followed by Nifty PSE. On the other hand, Nifty FMCG emerged as the lone sectoral loser. With regards to stocks, Coal India & NTPC emerged as the top stock gainers amongst the Nifty pack while ITC & Kotak Bank emerged as the top two losers.
The Midcap index has staged a sharp recovery after finding support near its 50-day EMA four sessions ago. Over the past three trading days, the index has gained 2.42%, reflecting renewed buying interest. Momentum is gradually building in the midcap space, backed by strong volumes. The recent price action suggests potential continuation of the recovery in the near term.
Small caps continued their upward momentum, extending gains and maintaining a higher-high, higher-low structure since mid-December. The index now trades above all key moving averages, indicating a structurally strong trend. Improved price action and sustained participation suggest growing confidence in the broader market, with momentum favouring further upside as long as the index holds above its recent swing lows.
The market breadth remained steady, with the advance-decline ratio skewed in the favor of bulls at days close. A total of 367 stocks out of the Nifty 500 universe ended in the green, indicating broad based participation.
Nifty View
Going ahead, for Nifty, the zone of 26,410-26,440 will act as an immediate resistance. Any sustained move above the 26,440 level could lead to Index extending its pullback higher towards the 26,520 level, followed by 26,600. On the downside, 26100 is expected to act as the immediate support followed by the 20-day EMA zone of 26,050-26,000.
Bank Nifty View
After breaking above the downward-sloping trendline breakout on the daily chart, Bank Nifty extended its upward move and scaled a fresh all-time high of 60,204. The price action remains supported by strong momentum indicators. RSI continues to hold above 60, DI+ has crossed above DI- on the ADX indicator and the MACD line has moved above the signal line, reinforcing the ongoing bullish structure.
Going ahead, for Bank Nifty, the zone of 60,600 will act as an immediate resistance. Any sustained move above the 60,600 level could lead to the rally extending further in the Index until 60,900 level, followed by 61,200. On the downside, the zone of 59,700-59,600 will act as a strong support for the index.
